This article provides a comparison of building activity for Sydney and Melbourne Statistical Divisions from 1993–94 to 2000-01. The data were obtained from the quarterly Building Activity Survey.

In both cities, the proportion of new houses completed has decreased in favour of other residential dwellings (e.g. semi-detached buildings, flats, units, apartments). In Sydney the proportion of houses to total dwelling units completed has dropped to below 50%, and in Melbourne the proportion has fallen to about 70%.

HOUSES AND OTHER RESIDENTIAL DWELLINGS

The table below shows that the proportion of houses to total dwelling units is greater in Melbourne than Sydney, but the trend is declining for both capital cities. Sydney recorded a decrease in the proportion of houses built from 52.2% in 1993–94 to 44.9% in 2000-01 whereas Melbourne decreased from 86.5% to 70.8%, with much of the decrease occurring in 1996-97.

Overall, the number of dwelling units completed has been slightly higher in Sydney than Melbourne in recent years. However, the number of houses built is significantly higher in Melbourne, whereas the number of other residential dwellings is much greater in Sydney.

DWELLING UNITS COMPLETED, By capital city

Period

New housesno.

New houses%

New otherresidentialbuildingsno.

New otherresidentialbuildings%

Total new dwellingunitsno.

SYDNEY

1993-94

12,255

52.2

11,235

47.8

23,490

1994-95

13,592

52.7

12,220

47.3

25,812

1995-96

12,643

45.7

14,998

54.3

27,641

1996-97

11,438

45.9

13,502

54.1

24,940

1997-98

12,904

50.1

12,863

49.9

25,767

1998-99

13,910

44.9

17,066

55.1

30,976

1999-00

14,977

45.1

18,218

54.9

33,195

2000-01

12,933

44.9

15,766

55.1

28,599

MELBOURNE

1993-94

17,543

86.5

2,732

13.5

20,275

1994-95

18,449

87.7

2,599

12.3

21,048

1995-96

14,970

84.8

2,682

15.2

17,652

1996-97

11,768

69.4

5,191

30.6

16,959

1997-98

16,086

72.6

6,060

27.4

22,146

1998-99

18,955

74.5

6,484

25.5

25,439

1999-00

22,411

74.9

7,520

25.1

29,931

2000-01

20,591

70.8

8,497

29.2

29,088

The trend away from houses to other residential dwellings is expected to continue in the next few years, as evidenced by approvals and commencement data since 2000-01.

OTHER RESIDENTIAL DWELLINGS-NUMBER OF STOREYS

There has been a clear trend towards flats, units or apartments in buildings of four or more storeys. The table below shows that this category has trended strongly upwards in Sydney from 5.1% of all dwelling units completed in 1993-94 to 26.5% in 2000-01, whereas in Melbourne there has been a more gradual increase from 2.0% to 11.4%.

Over the same period, both semi-detached buildings of one storey, and flats, units or apartments of one or two storeys, have trended downwards in Sydney, but there are no strong trends for these categories in Melbourne.

The trend towards other residential dwellings in buildings of four or more storeys is expected to continue in the next few years as evidenced by approvals and commencements data since 2000-01.

OTHER RESIDENTIAL AS PERCENTAGE OF TOTAL RESIDENTIAL DWELLINGS COMPLETED

Period

1 storey%

2 or morestoreys%

1 or 2storeys%

3 storeys%

4 or morestoreys%

New other residentialbuilding%

SYDNEY

1993-94

17.5

7.9

12.3

5.1

5.1

47.8

1994-95

14.2

9.6

8.1

6.1

9.3

47.3

1995-96

12.4

11.7

7.1

6.6

16.5

54.3

1996-97

9.3

12.4

7.7

10.1

14.6

54.1

1997-98

6.5

12.4

7.0

10.9

13.1

49.9

1998-99

5.8

11.4

5.0

10.5

22.3

55.1

1999-00

5.1

12.6

3.2

8.2

25.7

54.9

2000-01

5.0

11.3

4.0

8.3

26.5

55.1

MELBOURNE

1993-94

5.7

3.3

0.2

2.3

2.0

13.5

1994-95

4.9

3.6

0.8

0.8

2.2

12.3

1995-96

5.8

3.8

0.8

0.9

3.8

15.2

1996-97

12.4

5.9

1.0

1.4

9.9

30.6

1997-98

11.8

7.3

1.1

1.2

5.9

27.4

1998-99

8.8

8.0

1.5

2.0

5.2

25.5

1999-00

7.2

7.9

1.6

1.2

7.3

25.1

2000-01

6.3

8.4

1.5

1.7

11.4

29.2

AVERAGE VALUE OF HOUSES

The following graph shows that the average value of new houses completed in current prices has gradually increased in both capital cities. Despite a slight drop in value in 1996-97, the average value of a new house has steadily risen for Sydney from $115,105 in 1993–94 to $174,071 in 2000-01. In Melbourne the average value has increased from $94,797 to $151,909.

The graph below presents the average value of new houses completed in chain volume terms. The chain volume estimates measure the change in value after the direct effects of price changes have been eliminated. As with the original value, Sydney has been above Melbourne but figures have remained relatively stable for both cities from 1998-99.

VALUE OF NON-RESIDENTIAL BUILDING

The total value for non-residential buildings completed has been greater in Sydney than Melbourne.

In Sydney the value of non-residential building rose strongly from 1996-97 to 1999-00 with a drop in 2000-01. Melbourne's value has steadily grown from 1994-95.

The main categories of building contributing to these movements are hotels, entertainment/recreation and offices. These are highlighted below.

Despite a slight drop in 1998-99, the value of hotels etc. generally rose in Sydney from 1995-96. Values for Melbourne have tended to fluctuate over the period.

Large fluctuations in values for entertainment and recreational buildings have occurred for both capital cities. Sydney's activity increased from 1996-97 to 1999-00, which coincided with the lead up to the Olympic Games. Melbourne's activity peaked in 1997-98.

Both Sydney and Melbourne had significant declines in the value of office buildings completed in 1994-95. In Sydney, activity began to pick up in 1998–99, whereas in Melbourne it remained relatively flat.

For further information on this topic contact Roger Mableson on 08 8237 7494.

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